China Eximbank provides $36.9 million preferential buyer’s credit for the Upgrade of the Vahdat-Yavan Section of the Dushanbe-Kurgantube Railway Project (Linked to Project ID#40489)

On November 7, 2014, the Ministry of Finance of the Republic of Tajikistan signed two loan agreements with the Export-Import Bank of China for the Upgrade of the Vahdat-Yavan Section of the Dushanbe-Kurgantube Railway Project: a RMB-denominated government concessional loan (GCL) provided on highly concessional terms (20 year maturity, 11 year grace period, and 1.5% interest rate) and a preferential buyer’s credit (PBC) loan on highly concessional terms (2% interest, 20 year maturity, 9 year grace period), each with a bank service fee of 0.2% and a reservation fee of 0.2%). On August 13, 2013, State Unitary Enterprise “Rohi Ohani Tojikiston” had signed a contract for the survey, design and construction of tunnels and bridges of the new Dushanbe-Kurgan-Tyube railway, Vahdat-Yavan section for $59,993,900 USD. The Government of Tajikistan approved this deal on August 28, 2013, and ordered the Ministry of Finance to attract a soft loan from China Eximbank. The total cost of the project was approximately $71.993 million USD. The loans from the Export-Import Bank of China were valued at $68,992,970 USD. Tajikistan contributed $2,999,700 USD through State Unitary Enterprise "Rohi Ohani Tojikiston”. The face value of the GCL loan was RMB 191.9 million. The face value of the PBC loan was $36.9 million USD (pg.5 of “Отчет о состоянии государственного долга на 2014 год”). These loans combined are roughly equal to the reported Eximbank contribution. The loans were ratified by the Tajik Parliament on January 14, 2015. Project ID#40489 records the GCL and Project ID#71443 records the PBC. This project was to become the first railway project launched and completed under the framework of the "Silk Road Economic Belt" initiative, and was to become a hub of an international railway network connecting China, Tajikistan, Afghanistan, and Iran. China Railway 19th Bureau Group Co Ltd was the contractor responsible for project implementation. Construction began on May 15, 2015 and the project was completed on August 24, 2016. This project involved the construction of construction of 5 bridges and 3 tunnels along the Vakhdat-Yavan section of the Dushanbe-Kurgantube railway. Additional locational details can be found at https://reconnectingasia.csis.org/database/projects/vahdat-yavan-railway-construction/bde10173-33b5-4431-9ad2-19468648bcbd/.

Additional details

1. The Russian project title is Строительство железной дороги Душанбе-Курган-тюбе, участок Вахдат- Яван. 2. Yavan is also spelled Yovon. Vahdat is also spelled Vakhdat. 3. The face value of the loan is identified by Tajikistan's Ministry of Finance via http://minfin.tj/downloads/ochet%20vnesh%20dolg_2014.pdf.

Number of official sources

9

Number of total sources

18